Impinj Reports Fourth Quarter and Full Year 2025 Financial Results

SEATTLE--(BUSINESS WIRE)-- Impinj, Inc. (Nasdaq: PI), a leading RAIN RFID provider and Internet of Things pioneer, today released its financial results for the fourth quarter and year ended December 31, 2025. “2025 was a transition year for Impinj. We grew year-over-year endpoint IC volumes, made M800 our volume runner, launched Gen2X and exited the year with record adjusted EBITDA and cash,” said Chris Diorio, Impinj co-founder and CEO. “As we continue driving our bold vision, I remain confident in our market position and energized by the opportunities ahead.” Fourth Quarter 2025 Financial Summary Revenue of $92.8 million GAAP gross margin of 51.8%; non-GAAP gross margin of 54.5% GAAP net loss of $1.1 million, or loss of $0.04 per diluted share using 30.1 million shares Adjusted EBITDA of $16.4 million Non-GAAP net income of $15.6 million, or income of $0.50 per diluted share using 32.0 million shares Full Year 2025 Financial Summary Revenue of $361.1 million GAAP gross margin of 52.5%; non-GAAP gross margin of 55.3% GAAP net loss of $10.8 million, or loss of $0.37 per diluted share using 29.3 million shares Adjusted EBITDA of $69.6 million Non-GAAP net income of $64.2 million, or income of $2.11 per diluted share using 32.2 million shares A reconciliation between GAAP and non-GAAP information is contained in the tables below. Additionally, descriptions of these non-GAAP financial measures are provided in the “Non-GAAP Financial Measures” sections below. First Quarter 2026 Financial Outlook Impinj provides guidance based on current market conditions and expectations; actual results may differ materially. Please refer to the comments below regarding forward-looking statements. The following table presents Impinj’s financial outlook for the first quarter of 2026 (in millions, except per share data): Three Months Ending March 31, 2026 Revenue $71.0 to $74.0 GAAP Net loss ($16.6) to ($15.1) Adjusted EBITDA income $1.2 to $2.7 GAAP Weighted-average shares — diluted 30.3 to 30.5 GAAP Net loss per share — diluted ($0.55) to ($0.49) Non-GAAP Net income $2.5 to $4.0 Non-GAAP Weighted-average shares — diluted 31.3 to 31.5 Non-GAAP Net income per share — diluted $0.08 to $0.13 A reconciliation between GAAP and non-GAAP financial measures is provided in the “Non-GAAP Financial Measures” section below. Conference Call Information Impinj will host a conference call and webcast to discuss its fourth-quarter and full-year 2025 results and first-quarter 2026 outlook today, February 5, 2026 at 5:00 p.m. ET / 2:00 p.m. PT. Interested parties may access the call by dialing +1-412-317-1863. A live webcast and replay will also be available on the company’s website at investor.impinj.com. Following the call, a telephonic replay will be available for five business days and may be accessed by dialing +1-412-317-0088 and entering passcode 1284856. Management’s prepared written remarks, along with quarterly financial data, will be made available on Impinj’s website at investor.impinj.com along with this release. Forward-Looking Statements This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding our strategy, and prospects, statements regarding conditions in the markets in which we compete as well as the broader economy, our market position, and our financial guidance and considerations for the first quarter of 2026 and future periods. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption “Risk Factors” and elsewhere in our annual report on Form 10-K and quarterly reports on Form 10-Q filed with the U.S. Securities and Exchange Commission. All information provided in this release and in the attachments is as of the date hereof, and we undertake no duty to update this information unless required by law. About Impinj Impinj (Nasdaq: PI) helps businesses and people analyze, optimize, and innovate by wirelessly connecting billions of everyday things — such as apparel, automobile parts, luggage, and shipments — to the Internet. The Impinj platform uses RAIN RFID to deliver timely data about these everyday things to business and consumer applications, enabling a boundless Internet of Things. www.impinj.com Impinj is a registered trademark of Impinj, Inc. All other trademarks are the property of their owners. IMPINJ, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value, unaudited) December 31, 2025 December 31, 2024 Current assets: Cash and cash equivalents $ 48,206 $ 46,053 Short-term investments 127,130 118,661 Accounts receivable, net 70,785 56,802 Inventory 84,961 99,346 Prepaid expenses and other current assets 8,135 5,536 Total current assets 339,217 326,398 Long-term investments 103,766 74,871 Property and equipment, net 50,290 50,610 Intangible assets, net 9,501 10,291 Operating lease right-of-use assets 20,896 7,142 Other non-current assets 795 1,045 Goodwill 20,721 18,723 Total assets $ 545,186 $ 489,080 Liabilities and stockholders’ equity: Current liabilities: Accounts payable $ 13,614 $ 17,254 Accrued compensation and employee related benefits 9,936 22,309 Accrued and other current liabilities 3,664 2,684 Current portion of operating lease liabilities 776 3,589 Current portion of long-term debt 96,745 283,493 Current portion of deferred revenue 1,791 1,848 Total current liabilities 126,526 331,177 Long-term debt 184,141 — Operating lease liabilities, net of current portion 22,536 5,719 Deferred tax liabilities, net 2,062 2,200 Deferred revenue, net of current portion 690 120 Total liabilities 335,955 339,216 Stockholders’ equity: Common stock, $0.001 par value 30 29 Additional paid-in capital 606,852 541,090 Accumulated other comprehensive income (loss) 2,509 (1,942 ) Accumulated deficit (400,160 ) (389,313 ) Total stockholders’ equity 209,231 149,864 Total liabilities and stockholders’ equity $ 545,186 $ 489,080 IMPINJ, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data, unaudited) Three Months Ended Year Ended December 31, December 31, 2025 2024 2025 2024 Revenue $ 92,849 $ 91,569 $ 361,075 $ 366,087 Cost of revenue 44,794 45,347 171,398 177,232 Gross profit 48,055 46,222 189,677 188,855 Operating expenses: Research and development 26,929 25,894 102,615 98,829 Sales and marketing 10,357 10,688 36,530 40,579 General and administrative 12,933 12,762 49,192 51,802 Amortization of intangibles 534 491 2,077 2,902 Restructuring costs — — — 1,812 Total operating expenses 50,753 49,835 190,414 195,924 Loss from operations (2,698 ) (3,613 ) (737 ) (7,069 ) Other income, net 2,509 2,107 9,214 7,937 Income from settlement of litigation — — — 45,000 Induced conversion expense — — (15,026 ) — Interest expense (798 ) (1,221 ) (4,367 ) (4,873 ) Income (loss) before income taxes (987 ) (2,727 ) (10,916 ) 40,995 Income tax benefit (expense) (152 ) 37 69 (157 ) Net income (loss) $ (1,139 ) $ (2,690 ) $ (10,847 ) $ 40,838 Net income (loss) per share — basic $ (0.04 ) $ (0.09 ) $ (0.37 ) $ 1.46 Net income (loss) per share — diluted $ (0.04 ) $ (0.09 ) $ (0.37 ) $ 1.39 Weighted-average shares outstanding — basic 30,148 28,398 29,283 27,953 Weighted-average shares outstanding — diluted 30,148 28,398 29,283 29,471 IMPINJ, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited) Year Ended December 31, 2025 2024 Operating activities: Net income (loss) $ (10,847 ) $ 40,838 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 15,040 13,588 Stock-based compensation 55,263 56,546 Restructuring equity modification expense — 366 Accretion of discount or amortization of premium on investments (2,339 ) (1,122 ) Amortization of debt issuance costs 1,797 1,638 Induced conversion expense related to convertible notes 15,026 — Deferred tax expense (396 ) (567 ) Revaluation of acquisition-related contingent consideration liability — 986 Changes in operating assets and liabilities, net of amounts acquired: Accounts receivable (13,726 ) (1,999 ) Inventory 14,488 (2,220 ) Prepaid expenses and other assets (727 ) 227 Accounts payable (3,376 ) 9,270 Accrued compensation and employee related benefits (12,512 ) 13,855 Accrued and other liabilities 984 244 Acquisition-related contingent consideration liability — (2,556 ) Operating lease right-of-use assets 2,510 2,560 Operating lease liabilities (2,812 ) (3,392 ) Deferred revenue 373 48 Net cash provided by operating activities 58,746 128,310 Investing activities: Purchases of investments (202,771 ) (202,063 ) Proceeds from sales of investments 12,937 — Proceeds from maturities of investments 154,680 26,605 Purchases of property and equipment (12,861 ) (17,112 ) Net cash used in investing activities (48,015 ) (192,570 ) Financing activities: Proceeds from issuance of 2025 Notes, net of issuance costs 183,658 — Premiums paid for capped call transactions (11,210 ) — Payment of 2021 Notes (190,000 ) — Proceeds from exercise of stock options and employee stock purchase plan 11,795 20,281 Payments of taxes on restricted stock units (3,171 ) — Payment of acquisition-related contingent consideration — (4,602 ) Net cash provided by (used in) financing activities (8,928 ) 15,679 Effect of exchange rate changes on cash and cash equivalents 350 (159 ) Net increase (decrease) in cash and cash equivalents 2,153 (48,740 ) Cash and cash equivalents Beginning of period 46,053 94,793 End of period $ 48,206 $ 46,053 Non-GAAP Financial Measures To supplement our condensed consolidated financial statements prepared and presented in accordance with U.S. generally accepted accounting principles, or GAAP, our key non-GAAP performance measures include adjusted EBITDA, non-GAAP net income (loss), free cash flow and adjusted free cash flow as defined below. We use adjusted EBITDA and non-GAAP net income (loss) as key measures to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operating plans. We use free cash flow and adjusted free cash flow as key measures when assessing our sources of liquidity, capital resources, and quality of earnings. We believe these measures provide useful information for period-to-period comparisons of our business to allow investors and others to understand and evaluate our operating results in the same manner as our management and board of directors. Our presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP, and our non-GAAP measures may be different from similarly termed non-GAAP measures used by other companies. Adjusted EBITDA We define adjusted EBITDA as net income (loss) determined in accordance with GAAP, excluding, if applicable for the periods presented, the effects of stock-based compensation; depreciation and amortization; restructuring costs; settlement income and related costs; induced conversion expense; other income, net; interest expense; acquisition related expense and related purchase accounting adjustments; and income tax benefit (expense). We have excluded these items because we do not believe they reflect our core operations and us excluding them enables more consistent evaluation of our operating performance. The revision to our definition of adjusted EBITDA did not impact adjusted EBITDA for any previously reported periods because there was no impact of a similar nature in such prior periods affecting comparability. Non-GAAP Net Income (Loss) We define non-GAAP net income as net income (loss), excluding, if applicable for the periods presented, the effects of stock-based compensation; depreciation and amortization; restructuring costs; settlement income and related costs; induced conversion expense; acquisition related expense and related purchase accounting adjustments; and the corresponding income tax impacts of adjustments to net income (loss). Free cash flow We define free cash flow as net cash provided by (used in) operating activities, determined in accordance with GAAP, less purchases of property and equipment. We define adjusted free cash flow as free cash flow less cash received from gain on litigation settlement. IMPINJ, INC. RECONCILIATIONS OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (in thousands, except percentages, unaudited) Three Months Ended Year Ended December 31, December 31, 2025 2024 2025 2024 GAAP Gross margin 51.8 % 50.5 % 52.5 % 51.6 % Adjustments: Depreciation and amortization 2.3 % 2.1 % 2.2 % 1.9 % Stock-based compensation 0.5 % 0.6 % 0.6 % 0.6 % Non-GAAP Gross margin 54.5 % 53.1 % 55.3 % 54.0 % Certain amounts may be off due to rounding GAAP Net income (loss) $ (1,139 ) $ (2,690 ) $ (10,847 ) $ 40,838 Adjustments: Depreciation and amortization 3,958 3,433 15,040 13,588 Stock-based compensation 15,167 15,210 55,263 56,546 Restructuring costs — — — 1,812 Acquisition related expenses — — — 986 Other income, net (2,509 ) (2,107 ) (9,214 ) (7,937 ) Income from settlement of litigation — — — (45,000 ) Induced conversion expense — — 15,026 — Interest expense 798 1,221 4,367 4,873 Income tax benefit (expense) 152 (37 ) (69 ) 157 Adjusted EBITDA $ 16,427 $ 15,030 $ 69,566 $ 65,863 GAAP Net income (loss) $ (1,139 ) $ (2,690 ) $ (10,847 ) $ 40,838 Adjustments: Depreciation and amortization 3,958 3,433 15,040 13,588 Stock-based compensation 15,167 15,210 55,263 56,546 Restructuring costs — — — 1,812 Acquisition transaction expenses — — — 986 Income from settlement of litigation — — — (45,000 ) Induced conversion expense — — 15,026 — Income tax effects of adjustments(1) (2,347 ) (1,426 ) (10,322 ) (5,860 ) Non-GAAP Net income $ 15,639 $ 14,527 $ 64,160 $ 62,910 Non-GAAP Net income per share — diluted $ 0.50 (3) $ 0.48 (2) $ 2.11 (2) $ 2.11 (2) GAAP Weighted-average shares — diluted 30,148 28,398 29,283 29,471 (4) Dilutive shares from stock plans 947 1,500 850 — Dilutive shares from convertible debt 878 2,589 2,055 2,589 Non-GAAP Weighted-average shares — diluted 31,973 (3) 32,487 (2) 32,188 (2) 32,060 (2) (1) The tax effects of the adjustments are calculated using the statutory rate, taking into consideration the nature of the item and relevant taxing jurisdictions. (2) Diluted net income per share includes the impact of all convertible debt outstanding at period end, using the if-converted method, which assumes full share settlement. Interest expense is added back to net income and weighted average shares includes total shares issuable at conversion. (3) Diluted net income per share includes the impact of a portion of our convertible debt (2021 Notes) using the if-converted method, which assumes full share settlement. Interest expense related to the 2021 Notes of $0.4 million is added back to net income and weighted average shares includes total shares issuable at conversion. (4) GAAP Weighted average shares — diluted includes the impact of dilutive shares from convertible debt. IMPINJ, INC. RECONCILIATIONS OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (in thousands, except percentages, unaudited) Three Months Ended Year Ended December 31, December 31, 2025 2024 2025 2024 GAAP Net cash provided by operating activities $ 15,136 $ 12,623 $ 58,746 $ 128,310 Adjustments: Purchases of property and equipment (1,518 ) (4,133 ) (12,861 ) (17,112 ) Free cash flow $ 13,618 $ 8,490 $ 45,885 $ 111,198 Adjustments: Income from settlement of litigation — — — (45,000 ) Adjusted free cash flow $ 13,618 $ 8,490 $ 45,885 $ 66,198 IMPINJ, INC. RECONCILIATIONS OF GAAP FINANCIAL OUTLOOK TO NON-GAAP FINANCIAL OUTLOOK (in thousands, except per share data, unaudited – calculated at the midpoint of the outlook range) Three Months Ending March 31, 2026 GAAP Net loss $ (15,819 ) Adjustments: Forecasted Depreciation and amortization 3,960 Forecasted Stock-based compensation 15,560 Forecasted Interest expense 799 Forecasted Other income, net (2,700 ) Forecasted Income tax expense 100 Adjusted EBITDA $ 1,900 GAAP Net loss $ (15,819 ) Adjustments: Forecasted Depreciation and amortization 3,960 Forecasted Stock-based compensation 15,560 Forecasted Income tax effects of adjustments (424 ) Non-GAAP Net income $ 3,277 GAAP Net loss per share — diluted $ (0.52 ) Non-GAAP Net income per share — diluted $ 0.10 GAAP Weighted-average shares — diluted 30,400 Dilutive shares 1,000 Non-GAAP Weighted-average shares — diluted 31,400 View source version on businesswire.com: https://www.businesswire.com/news/home/20260205852338/en/ For more information, contact: Investor Relations Andy Cobb, CFA Vice President, Corporate Finance & Investor Relations +1-206-315-4470 [email protected] Media Relations Emily Schauer Senior Corporate Communications Manager +1 206-209-2923 [email protected] Source: Impinj, Inc.